Terms and conditions


A full driver's license must have been held for at least 12 months and must be presented at the start of the rental. The renter must be 20 years of age to rent a vehicle at Blue Car Rental. To rent a large size SUV or a passenger car the renter must be 23 years of age.


All rentals are subject to the full rental agreement terms and conditions at the time of rental. A credit card imprint will be taken at the start of all rentals for security reasons, even when a voucher covers the cost of the rental. This credit card imprint may be used to pay all extra charges as extra insurance, parking fines, damages or any cost due to the rented car as a result of the renter's use of the car.


The minimum rental period at Blue Car Rental is - 24 hours. When the drop-off is one hour or more after the pick-up time, it is regarded as a full day.


Our pick up and drop locations are, Our Office, Keflavik Int. Airport, Blikavellir 3, and Reykjavik City office, Fiskislóð 22. Please contact us via e-mail or phone in tel: +354 773-7070 if you have any trouble finding us.


Taking the car outside of the country is strictly forbidden


We reserve the right to substitute vehicles when the reserved car types are not available. We cannot always guarantee the brand, but we can guarantee a similar car or an upgrade instead.


The rental car will normally have a full tank of fuel. The car should be returned full or a charge will be made for having the tank refilled even if it is missing just some liters. In case the fuel tank is not full at the time of the rental, the car should be returned with the same amount of gas in it. If the car is returned with less gas than when it was rented, we will charge the cost for the missing gas plus an additional ISK 2.000


Local value added tax (VAT) is 24%


In Iceland, it is mandatory for young children to travel in safety seats while in a vehicle. Child seats are available if pre-ordered at a reasonable additional charge. These child seats are generally suitable for children aged from 6 months to +4 years of age. Booster seats are free of charge at Blue Car Rental.


In order to guarantee your reservation, we require a valid credit card number and we charge your credit card at the time of your booking.
In case of a cancellation, this is our policy;

  • Cancel more than 24 hours prior to the rental and get a full refund (100%)
  • In case of no show or cancellation the same day, the full rental price will be charged.


Early returns are always allowed. However, no refunds can be given for unused, or partly used car hire vouchers unless the amendments or cancellations have been made prior to the pick-up date.


Third part liability is equivalent to the amount stipulated by Icelandic law at each time. This also applies to the amount of individual driver liability. Third party coverage and personal accident insurance is automatically included in your rental and in the self-risk liability amount mentioned here below. If for some reason, the renter causes damages to a third-party vehicle, without causing damages to the rented vehicle, the third-party liability is a total of ISK 35.000.


We at Blue Car Rental, include the Super Collision damage waiver (SCDW) along with the Collision damage waiver (CDW) in our prices. A renter which only has the CDW is liable for damages amounting up to ISK 350.000 but since the SCDW is included, the maximum self-risk amount is ISK 90.000 for all 2wd cars and ISK 120.000 for all 4wd cars and larger passenger cars. We offer our customers this to provide them with more security when travelling and a more enjoyable experience. 


This protection includes damage to the windscreen, headlights, front bumper, mirrors, and the hood of the car when gravel or rocks gets thrown onto the vehicle by another car. The gravel protection (GP) is included. The self-risk amount for a broken windscreen is ISK 20.000.


TP covers theft of the rental vehicles. (included)


For our customer's protection we have decided to offer an insurance which covers our customers against damage due to sand and ash storm which damages the paint of the car, windows, lights, and plastic. These damages can cost between 500.000 to 1.500.000 ISK to fix. By purchasing SAAP the self-risk in case of damage from sand and ash is lowered to 90.000 ISK. We offer the SAAP for only 1.650 ISK per day. Volcano eruptions in the past years have increased the risk of damage to the paint and windows of all cars and no insurance company will cover these damages. In high winds and dry weather, the
ash from the volcanos and sand in the south coast can cause huge damage to the cars and all the cost has fallen on the renter, until now. (NOT included


  • Damages caused by negligence or driving while intoxicated.
  • Damages to doors caused by wind blowing them up.
  • Damages to the tires and service related to changing or repairing the tire.
    • Note: Only applies if the renter has not opted for the Liability Waiver and/or Roadside Assistance Waiver.
  • Damages to the underside of the car.
  • Damages caused by driving into waters, rivers or off-roading.
  • Damages caused to the clutch or other mechanical damages resulting from the renters negligence or misuse of the car.
  • Damages caused to the interior of the car.
  • Damage caused by sand and ash storm. (only applies if the renter has not opted for the SAAP or the LW insurance).
(Please see full details listed on the backside of the rental agreement.)



  • Charges or other costs for required assistance because of a breakdown or damage that is the driver´s responsibility.
  • Charges when pumping the wrong fuel on the car
  • Charges for losing accessories, such as the car key or a GPS unit.
  • Service charges and handling fee related to the renters use of the car, such as fines for speeding, parking fee and tunnel fee.
  • General charges for towing, resulting from the renters misuse or mistake such as getting stuck in snow, sand, water or river.
(Please see full details listed on the backside of the rental agreement.)

Note: By purchasing Roadside Assistance Waiver any cost for the above-mentioned assistance is reduced to zero apart from service charges or handling fee related to speeding, parking violation or parking,- tunnel,- or other entrance fees.

LIABILITY WAIVER (SAAP and Tire Protection included)
All our customers can reduce their liability to zero by opting for our Liability Waiver. As many of our customers wanted to have a carefree experience while driving around Iceland, we introduced the Liability Waiver. This allows our renters to drive carefree with Blue Car Rental while enjoying our beautiful island.

  *Note - Tire Protection only covers the damage of the tire, i.e. the repair or cost of new tire. It does NOT cover the assistance required. By purchasing Roadside Assistance Waiver the cost for the assistance is waived.

Keep in mind that the Liability Waiver is not extra insurance but an option for our renters to waive their liability in case of any damage covered by our insurances. This includes CDW/SCDW, GP, TP, SAAP, and Tire Protection and is subjected to the terms and conditions of the Rental Agreement. Excluded are any damages not covered by insurances as stated in Article 29 and 32 in the Rental Agreement and terms and conditions. See here https://www.bluecarrental.is/useful-information/terms/rental-agreement/



Blue Car Rental offers 24/7 Roadside- and breakdown assistance through our phone number +354 773-7070. We have service partners all around the country that we use in case of breakdown, accidents, damages or other incidents that require assistance. In case a replacement car is needed due to such an incident Blue Car Rental of course provides the renter with a new car as quickly as possible.

The Roadside Assistance Waiver reduces the amount that Blue Car Rental charges for assistance that is required because of a breakdown, accident, damage, or other reasons that are the driver´s / renter´s responsibility to ZERO.

If roadside assistance is required because of a breakdown, accident, damage or other reasons that are the driver´s / renter´s responsibility Blue Car Rental will charge the renter for the assistance. The fee for such assistance and/or retrieval fee for picking up a rental car can often vary from 35.000 ISK to 450.000 ISK depending on the location and what type of assistance is required. That is in addition to the damages to the rental car itself. This fee is of course not charged if the assistance can be traced to a breakdown, accident, damage, or other reasons that are Blue Car Rental´s responsibility.

The Roadside Assistance Waiver however limits such unexpected and often high expenses to zero and allows our renters to have a more carefree vacation.






Baby seat

Baby seat
Roof box

Roof box


This fee does not apply when the damages incurred are not caused by the renter. There is a handling fee of up to 50 EUR for all fines or charges that result from the renter's use of the car and the renter does not pay himself. Blue Car Rental will charge the renter for fines and charges plus the previously mentioned handling fee. If the car is returned extra dirty there is a cleaning fee of 15.000 ISK. This is in the case of an extremely dirty car, especially on the inside. Not from regular use of the car. Smoking is strictly forbidden in the car. If someone smokes inside the car, the renter will be liable for a cleaning fee and fine of 45.000 ISK. The retrieval fee for picking up the rental car because of damages or other reasons that can be related to the renters' responsibility is 350 ISK per km or a minimum of 35.000 ISK. The 350 ISK per km charge is calculated from Blue Car Rental's Keflavík Airport Office.

Please find our price list for damaged tires, missing fuel and missing or damaged accessories.
Through our reservation process, the payment for the reservation and by accepting the keys to your rental car, you have acknowledged and agreed to our terms & conditions of the rental agreement.

CALL 112

Breakdown service 24/7
Call: +354 773-7070